Draft Bilateral Agreement Between Commonwealth And Queensland

The Commonwealth Minister for the Environment, Heritage and the Arts, the Hon Peter Garrett recently invited public comment on a proposed new bilateral agreement between the Commonwealth and Queensland under the Environment Protection and Biodiversity Conservation Act 1999 (Cth) (EPBC Act). The current bilateral agreement expires on 13 August 2009 and the new agreement would, in effect, extend the operation of the existing agreement.

As with the existing bilateral agreement, the new agreement would provide for the accreditation of particular Queensland assessment processes under the EPBC Act. After assessment, any proposed action will still require approval from the Commonwealth Environment Minister under the EPBC Act.

Storage Of Greenhouse Gases

On 23 February 2009, the Queensland Parliament passed the Greenhouse Gas Storage Act 2009 (Qld) (GHGS Act). The GHGS Act introduces a regulatory regime to control the discovery and use of underground reservoirs for the storage of carbon dioxide. It will come into effect in January 2010.

The legislation has been encouraged by the Queensland Government's recognition that the storage of greenhouse gas (GHG) underground involves the use of storage reservoirs that are the property of the State. In its application, the GHGS Act also recognises the Commonwealth CPRS in that underground storage is considered an important option for reducing carbon dioxide emissions. GHGs that are captured and permanently stored are not defined as an 'emission' under the Commonwealth CPRS Bill.

To conduct GHG activities in Queensland it will be necessary to hold one of three types of authority available under the GHGS Act depending on the nature of the activity.

In addition to introducing this tenure scheme, the GHGS Act has amended the Environmental Protection Act 1994 (Qld) (EP Act) by introducing a new Chapter 5A that requires holders of GHG authorities to also hold an environmental authority under the EP Act.

To surrender any environmental authority under the EP Act, an application must be made to the Queensland Environment Protection Authority (EPA) supported by a final rehabilitation report. The EPA may require the provision of security to address residual risks arising from the activity undertaken pursuant to an environmental authority. This will apply to environmental authorities granted for GHG storage.

The Regulation Of Coal Seam Gas Water

The production of coal seam gas (CSG) produces large quantities of waste water, which if not managed appropriately, can cause environmental harm. In response to this issue the Queensland Department of Infrastructure and Planning published a discussion paper containing its proposed CSG Water Management Policy in May 2009, seeking comment by 1 June 2009. The policies presented are aimed at avoiding large scale evaporation ponds from CSG production and are likely to result in legislative provisions affecting the CSG industry in Queensland.

The Discussion Paper specifically refers to a three year period to remediate existing CSG evaporation ponds but is not prescriptive as to the alternatives available for CSG water disposal. However, the Queensland Government's position as set out in the Discussion Paper is that where aquifer injection or commercial use of the waste water is not feasible, the CSG producer will bear the cost of treating the water, either on or off site, to a level complying with standards set by the Department of Environment and Resource Management.

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